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You are working for a cruise line and attempting to determine how to price tickets for a cruise in the future.If you price the tickets
You are working for a cruise line and attempting to determine how to price tickets for a cruise in the future.If you price the tickets too high you will realize considerable sunk costs and last minute discounting.There is a 70% chance that demand will be low.Overpricing if demand is low will result in this state will result in loss of $2M.There is a 30% chance that demand will be high.Under pricing if demand is high will result in a loss of $4M.What should the firm do?
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